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How well does the Walmart credit card actually stand up to the mountain of competition that's out there? We all know there is no shortage of store credit cards available today, so just how well do Walmart's cards measure up? Like any credit card, the Walmart card has its good and bad points. Let's find out what they are.

Pros Of The Walmart Credit Card

Walmart offers two credit cards   a Walmart MasterCard and a Walmart consumer credit card. With the Walmart MasterCard, you can use your credit card anywhere you see the MasterCard sign, and you will earn 1 percent cash back on your purchases. You can only use the Walmart consumer credit card in the store or at one of Walmart's on-site gas stations. This article will discuss the Walmart consumer credit card.

When you purchase gas with your Walmart credit card at a Walmart gas station, you will save 5 cents per gallon on your purchase. If you live in Florida or Alabama, the discount will show up as a credit on your statement, rather than as an immediate savings at the pump. This is a nice perk if you live near a Walmart gas station.

Walmart credit cards have no annual fee. They include a $0 fraud liability in case of identity theft, and if you sign up for electronic statements online, you will receive a free monthly credit score from FICO. You will also be able to see the top two items affecting your score. This is a great feature if you like to monitor your credit score carefully. 

The Walmart credit card includes a unique cash-advance feature that allows you to withdraw $60 cash per day (in $20 increments) when you make an in-store purchase. While most credit card companies charge you a premium interest rate for making cash withdrawals, Walmart treats it as a store purchase, so you can avoid the additional credit card processing fees you find elsewhere.

Cons Of The Walmart Credit Card

However, if there is one number you really need to know about when applying for credit cards, it's the interest rate. Walmart doesn't offer much of an incentive. A typical interest rate for its cards currently comes in at around 22.9 percent. If you are the kind of person who diligently pays off your credit card balance every month, this will not be too much of a concern.

If you find yourself struggling to meet high monthly overheads and you start stacking up more cash back than you can really afford, that 22.9 percent interest rate will quickly become a big worry for you. Keep an eye out for special offers, however, that give you zero interest rates on purchases if you pay the card off within a specified period of time. Contact your local Walmart or go online to find the current interest-free offers.

There are definitely pros and cons with the Walmart credit cards, but the same can be said of almost any card you can apply for these days. It is up to you to weigh these factors in order to make the best decision for your situation.

If you are also a business owner, you should check out our comparison of the best credit card processing services. It has everything you need to know about choosing the right merchant service for your company.

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